Oil Prices Will Make Big Tax Cuts Difficult

Posted by Leigh Evans on January 06, 2015

Austin American-Statesman - A recovering economy and the oil and gas boom of recent years – and all the additional state revenue it has generated – bolstered campaign promises last year for sweeping tax cuts for homeowners facing skyrocketing property levies and also for businesses that often help finance those bids for elected office.

...lawmakers probably will have to pursue “small ball” tax cuts rather than “grand slam home runs,” said state Sen.-elect Paul Bettencourt, a Republican from Houston who is closely aligned with Lt. Gov.-elect Dan Patrick. Both called for property tax cuts during their campaigns.

“Realistically, the small balls are much more probable than the big block busters, at this point,” said Bettencourt, a tax consultant and former Harris County tax assessor-collector, noting that oil dipped below $50 a barrel on Monday for the first time since 2009.